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KR Motors Co. Ltd. (000040) AI Stock Analysis

KR:000040

KR Motors Co. Ltd.

(Korea Exchange:000040)

Select Model
Rating:50Neutral
Price Target:KRW 1,132.00â–¼(-9.51% Downside)
Action:initiatedcoverage
Date:10/28/26

The score is held back primarily by weak financial quality—ongoing operating losses and persistent cash burn despite a headline net-income rebound—suggesting the recovery is not yet supported by cash earnings. Technicals are neutral with price still below key longer-term averages, while valuation looks very low on P/E but is less convincing given the operating and cash-flow weakness.

Positive Factors
Revenue rebound and improved gross marginThe sharp sales rebound and higher gross margin indicate improving product pricing or mix and renewed demand for KR Motors’ mobility offerings. If sustained, this progress can strengthen operating leverage, support reinvestment, and provide a foundation for restoring profitability over the next several quarters.
Negative Factors
Persistent operating lossesThe sales recovery has not yet translated into viable core profitability, showing that KR Motors’ underlying cost structure or operating model remains under pressure. Continued operating losses could absorb resources, limit self-funded investment, and delay a durable turnaround even if revenue remains strong.

KR Motors Co. Ltd. (000040) vs. SPDR S&P 500 ETF (SPY)

-80%-60%-40%-20%0%20%KR:000040-47.77%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
KRW 23.17B
Dividend Yield
―
Average Volume (3M)
122.62K
Price to Earnings (P/E)
0.8
Beta (1Y)
-0.07
Revenue Growth
―
EPS Growth
―
Country
KR
Employees
51
Sector
General
Sector Strength
55
Industry
Auto - Recreational Vehicles

KR Motors Co. Ltd. Business Overview & Revenue Model

Company Description

Founded in 1917 and headquartered in Changwon, South Korea, KR Motors Co., Ltd. is a prominent global manufacturer and seller of motorcycles. The company's extensive product line encompasses various vehicle types, including traditional bikes, scooter...

KR Motors Co. Ltd. Financial Statement Overview

Summary

Financials show a turnaround attempt but remain unproven: revenue rebounded sharply and TTM net income is very strong, yet the company is still loss-making at the operating level and continues to burn cash (negative operating cash flow and free cash flow). The mismatch between strong net income and negative operating cash flow raises earnings-quality concerns.

Income Statement

42Neutral

Balance Sheet

55Neutral

Cash Flow

28Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue35.24B13.82B16.02B78.41B117.06B133.51B
Gross Profit5.24B2.11B-258.14M4.77B17.03B17.68B
EBITDA-2.02B-2.74B-1.37B-6.14B-6.71B-460.84M
Net Income28.44B-1.90B-11.37B-15.91B-13.00B-11.92B
Balance Sheet
Total Assets169.78B94.20B85.27B138.57B149.19B168.44B
Cash, Cash Equivalents and Short-Term Investments9.58B10.49B7.45B16.24B17.45B20.57B
Total Debt62.75B34.32B43.32B70.73B53.71B45.89B
Total Liabilities97.25B50.52B52.63B116.17B109.16B118.21B
Stockholders Equity72.53B43.67B32.64B20.55B33.13B37.00B
Cash Flow
Free Cash Flow-5.45B-6.58B-5.20B-9.91B-4.22B-14.08B
Operating Cash Flow-4.94B-6.57B-5.15B-8.76B-2.41B-10.04B
Investing Cash Flow-14.73B-8.80B-9.91B472.93M-6.82B-3.03B
Financing Cash Flow26.85B13.65B5.95B8.42B1.71B4.24B

KR Motors Co. Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price1251.00

Price Trends

50DMA1174.00Positive
100DMA1272.82Negative
200DMA1656.88Negative

Market Momentum

MACD14.36Negative
RSI61.76Neutral
STOCH37.42Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR:000040, the sentiment is Positive. The current price of 1251.00 is above the 20-day moving average (MA) of 1073.35, above the 50-day MA of 1174.00, and below the 200-day MA of 1656.88, indicating a neutral trend. The MACD of 14.36 indicates Negative momentum. The RSI at 61.76 is Neutral, neither overbought nor oversold. The STOCH value of 37.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KR:000040.

KR Motors Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

KR:000040 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
KR:000040KR:00004050NeutralKRW 24.60B0.79――――
KR:025890KR:02589046NeutralKRW 26.79B-56.01――-13.76%-150.35%
KR:015260KR:01526042NeutralKRW 8.06B-0.75――0.39%-19.41%

* General Sector Average

Performance Comparison

-50%0%50%KR:000040KR:015260KR:025890KR:045300KR:079170KR:080470Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
KR:000040 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
KR:000040KR Motors Co. Ltd.1251.00-1189.00-48.73%
KR:015260Automobile & PCB Inc.171.00-322.00-65.31%
KR:025890Hankook Steel Co., Ltd.2440.00631.0034.88%
KR:045300Sungwoo Techron Co., Ltd3115.00115.323.84%
KR:079170HANCHANG INDUSTRY Co., Ltd.5220.00-1617.72-23.66%
KR:080470Sungchang Autotech Co., Ltd.2500.00-1593.06-38.92%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 28, 2026